Fulfilling his campaign promise, President Biden announced a new three-part student loan relief plan.
The plan includes an extension of the loan repayment freeze until December 31. Borrowers will receive forgiveness on their loans of up to $10,000. Recipients of Pell Grants will receive an additional $10,000. To qualify, borrowers must earn less than $125,000.
The new plan was criticized by some who think it is a step backward for our record-high inflation.
“We’re probably going to do more to increase inflation from debt cancellation, than any inflation reduction from the Inflation Reduction Act,” says Senior Vice President & Senior Policy Director of Committee for a Responsible Federal Budget Marc Goldwein.
The White House estimates this plan will leave about 20 million loan borrowers with a clean slate.